1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KATRIN_1 [288]
3 years ago
10

Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: Risk-free asset earnin

g 14% per year. Risky asset with expected return of 29% per year and standard deviation of 37%. If you construct a portfolio with a standard deviation of 28%, what is its expected rate of return? (Do not round your intermediate calculations. Round your answer to 1 decimal place.)
Business
1 answer:
OleMash [197]3 years ago
8 0

Answer:

25.4%

Explanation:

Portfolio standard deviation =  Proportion in the risky asset X Standard deviation of risky asset

                                               28 = 37x

Solving for x derives:-

                                         28/37  = x

Expected return of the portfolio =  14%( 1- (28/37)) + 29%(28/37)

                                                     = 25.4%

Therefore, the expected return on the portfolio is 25.4%.

                                           

You might be interested in
Which type of data is represented in the following statement? 42% of customers who purchase a warranty plan use the warranty ser
MrRissso [65]

Answer:

The answer is going

to be A. secondary research data

5 0
3 years ago
Accounting: A. measures business activities. B. is often called the language of business. C. processes data into reports and com
Anvisha [2.4K]

Answer: Is all of the above.

Explanation:

Accounting involves the process of taking accurate records of financial and non-financial activities of a business organization. Accounting is the language of business as it is needed for every business to succeed, also in accounting, records are kept that are useful in decision making.

7 0
3 years ago
What is the distinction between​ cross-sectional data and​ time-series data?
AleksAgata [21]

Answer:

B. ​Cross-sectional data provides information about economic behavior at an instant in​ time, while​ time-series data provides information about how an economic variable behaves over time.

Explanation:

There are two types of data, transverse data and time series data. Cross-sectional data is data that exists at a single point in time. For example, data from an observational survey or sales from a firm. Time series data are data that require intertemporal analysis, such as a country's inflation and GDP data, which should be analyzed for evolution. In other words, time series data are analyzed in a manner dependent on the previous period. Current month's inflation depends on the previous month's inflation analysis.

4 0
3 years ago
Old Corp. (target) merges into New Corp (acquiring) in a statutory Type A merger. What will the basis in Old Corp.'s assets be i
Murljashka [212]

Answer:

Carryover basis

In a Type A merger, the basis of the assets and liabilities carries over to the surviving entity.

Explanation:

5 0
4 years ago
Ocean City Kite Company sells kites for $11.50 per kite. In FY 2019, total fixed costs are expected to be $250,000 and variable
Dmitry_Shevchenko [17]

Answer:

40,000 kits

Explanation:

The computation is shown below:

Number of kits required to be sold to meet the goal = Total Contribution Margin Required ÷ Contribution Margin per Unit

where,

Total contribution margin required is

= Total fixed cost + operating income

= $250,000 + $90,000

= $340,000

And, the

Contribution Margin per Unit = Selling Price per Unit - Variable Cost per unit

= $11.50 - $3

= $8.50

So, the number of kits required is

= $340,000 ÷ $8.50

= 40,000 kits

8 0
3 years ago
Other questions:
  • Effect of Inventory Errors During the taking of its physical inventory on December 31, 20Y3, Sellers Company incorrectly counted
    7·1 answer
  • On January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannu
    8·1 answer
  • Ruben is a shareholder of speed bikes company (sbc). when the directors fail to undertake an action to redress a wrong suffered
    6·1 answer
  • A firm has $300 million of assets that includes $40 million of cash and 10 million shares outstanding. If the firm uses $30 mill
    6·1 answer
  • An ancient Greek philosopher of extraordinary significance in the history of ideas who not only preserved Socrates’s teachings f
    14·1 answer
  • Abica Roast Coffee Company produces Columbian coffee in batches of 6,000 pounds. The
    12·1 answer
  • In your opinion, what is the most important factor affecting the demand for sports and entertainment commodities?
    13·1 answer
  • After his company announced that it plans to cut 30% of the workforce within the next 90 days, Deon begins to experience chronic
    7·1 answer
  • The form of business ownership that has the most difficulty in raising capital is the ....
    11·1 answer
  • The revenue for a firm is $2,500,000. its cost of revenue is $850,000, and its average inventory for the year is $62,000. (round
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!